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FC: GLOBAL MARKETS AND NEWS ROUND-UP / OUTLOOK August 24, 2017at 07:12AM

UK seen up 4 / DAX flat / CAC flat / EStoxx50 flat

The NY Times reported that President Donald Trump and Senate Majority Leader Mitch McConnell haven’t spoken to one another in weeks.

Trump has called for a “new unity”, a day after a campaign-style rally in which he attacked political foes and media.

US MARKETS (% move from European close):

Dow Jones -0.16 21812.09

S&P 500 -0.16 2444.04

Nasdaq -0.13 6278.406

VIX 3.81 12.25

The U.S. markets ended the day with modest losses as they traded a fairly tight range sideways below their flat line over the afternoon. The S&P finished the day down 0.4%, down 0.2% from the European close, while the Nasdaq finished the day down 0.3%. 8 out of 11 S&P sectors ended in the negative led down by the industrial, down 0.9%, consumer discretionary, down 0.8%, and health care, down 0.7%, sectors. Meanwhile leading to the upside was the real estate, up 1%, energy, up 0.4%, and utility, up 0.3%, sectors. Trading volumes on the day were again light and well below recent averages.

AFTER HOUR MOVERS:

Williams-Sonoma up 7.7% 2Q adj EPS comp sales beat / PVH Corp up 3.5% boosts FY adj EPS forecast / Whole Foods Market up 0.7% & Amazon up 0.2% Amazon’s Whole Foods deal wins swift U.S. antitrust approval / HP down 1.3% 4Q EPS view midpoint slightly trails est

DUE TODAY: Hormel Foods, Tiffany, JM Smucker, The Toro Co, Marvell Tech, Autodesk

AFTER MARKET: Brocade Communications Systems, Broadcom, Veeva Systems, Splunk, Ulta Beauty, VMware

ADR MOVERS SINCE EUROPEAN CLOSE:

SEADRILL up 1.5%

ASIAN MARKETS:

Nikkei -0.31 19373.98

Hang Seng 0.59 27562.29

Shanghai Comp -0.16 3282.38

Australia 0.04 5739.60

Asian markets are trading a bit mixed as HK and Australia have modest gains while Japan and China re trading on or just below their flat lines. Data wise Japan’s Leading Index in Jun came in at from 106.3 previously while the Coincident Index came in at from 117.2 previously

NEWCREST up 2.5%

NOMURA down 2%

M & A:

– CRH is said to have agreed to buy Xella Int’s lime and limestone business for more than E500m as the firm expands through acquisitions

– ABB: GE is said to have resumed talks to sell industrial solutions business to ABB, hopes to sell for over $2Bn after initially targeting more than $3Bn, Reuters reports

– AIR BERLIN: LUFTHANSA submits proposal for acquisition of parts of AIR BERLIN

– SCHNEIDER, Eaton are said in race to buy L&T Electrical Unit, Economic Times reports

– SIKA buys ABC Sealants in Turkey, no terms given

COMPANY NEWS:

– BAM GROUP 1H rev E3.15Bn, order book E10.4Bn, adj pretax profit E52.7m, reconfirms FY outlook

– INTERTRUST 2Q rev E118.1m, Ebita margin 32%, net income E19m, interim div E0.28, reiterates FY guidance

– ION BEAM 1H rev E151.6m, adj Ebit E1.9m, net loss E4.66m, confirms FY rev growth outlook, sees FY low to mid-single digit adj Ebit margin, says div policy remains unchanged

– TELE COLUMBUS 2Q rev E124.4m, normalized Ebitda E62.4m, confirms FY targets

– OPERA SOFTWARE 2Q rev $110m vs est $117.2m, adj Ebitda $3.1m, loss $21.4m, sees FY below guidance from beginning of year

– KONGSBERG 2Q rev NKr3.73Bn, in line, order book NKr2.54Bn, Ebitda NKr207m, net income NKr64m vs est NKr205.4m, lowers FY op rev in Maritime, sees higher order intake for Defense Systems in 2H

– ABLYNX 1H rev E34.7m, op loss E24.8m, sees FY neg cash flow of E65m to E75m

– SWISS PRIME SITE 1H rental income CHf231m, Ebitda CHf223.3m

– VAT GROUP sees FY sales growth of around 30% & adj Ebitda margin about same level as 2016

– KOMAX 1H rev CHf194.7m, Ebit CHf25.4m, net CHf18.6m, sees 2h results higher than 1H

– KINEPOLIS 1H rev 160.1m vs est E158.8m, adj Ebitda E44m vs est E44.4m, adj net E16.4m vs est E16.8m, EPS E0.58, FCF +E8.6m

– HOEGH LNG 2Q total income $70.6m, Ebitda $37.7m vs est $36.3m, net income $3.5m vs est $5.45m

– SUNRISE COMMS 2Q rev CHf453m, adj Ebitda CHf153m, net income CHf27m, cuts FY adj Ebitda forecast to CHf592m to CHf602m from CHf577m to CHf592m previously, confirms FY rev forecast, now sees FY div of CHf3.90 to CHf4.10 up from CHf3.45 to CHf3.55 previously

– MARINE HARVEST 2Q rev E884m vs est E854.5m, Ebit E198m vs est E196.1m, net income E66.4m vs est E149.3m, harvest vol 78,612 metric tons, lowers FY harvest guidance to 377k tons

– AUSTEVOLL SEAFOOD 2Q rev NKr5.02Bn vs est NKr5.59Bn, Ebit NKr1.09Bn vs est NKr1.05Bn, net income NKr710m vs est NKr471.2m,

– LEROY SEAFOOD 2Q rev NKr4.22Bn vs est NKr4.69Bn, Ebit NKr801m vs est NKr906.3m, net income NKr1.15Bn vs est NKr675.9m, harvest vol 26,156 metric tons, sees FY harvest vol 175k GWT, sees improvements in 3Q vs 2Q and significantly better result for 2017 than in 2016

– GRIEG SEAFOOD 2Q rev NKr2.03Bn vs est NKr1.93Bn, Ebit NKr392m vs est NKr386.3m, net income NKr241.3m vs est NKr276.4m, harvest vol 18,503 metric tons, lowers FY harvest guidance to 67k tons

– ERICSSON: Fredrik Lundberg “not satisfied” with Ericsson’s development, prepared to be “patient” as company has “dealt with many issues,” Dagens Industri reports

– SIEMENS GAMESA gets 752mw order for Dong projects in Netherlands

– SKF: ELECTROLUX Chairman and former Atlas Copco CEO Ronnie Leten may become the next chairman of SKF when Leif Ostling eventually steps down, Dagens Industri reports

– BARRY CALLEBAUT America’s CEO to retire at end of month, to be replaced by Chief Innovation and Quality Officer Peter Boone

– DEUTSCHE BANK is said to have halved the price of its fixed-income and macro research as competition mounts in the run-up to Europe’s MiFID II regulations

– ROCHE: FDA grants priority review to Roche’s Emicizumab

– NOVARTIS’ Kisqali wins EU approval for advanced breast cancer

– INVESTMENT AB LATOUR holds a Capital Markets day

EUROPEAN EX-DIV’S:

TORM $0.02 / Glanbia €0.0591 / Irish Residual Properties €0.025 / Elekta SKr0.50

UK:

Berkeley Group 51.76p / CLS Holding 2.05p / Carnival $0.40 / Cineworld 6p / Devro 2.7p / Dixons Carphone 7.75p /FDM Group 12p / Fidessa 15.3p / Hikma Pharma $0.11 / Jardine Lloyd Thompson 12.2p / London Stock Exchange 14.4p / Mondi €0.191 / Paddy Power Betfair 65p / Polypipe 3.6p / Prudential 14.5p / Rotork 2.05p Total UK 100 Index Points = 2.31

COMMODITY SNAPSHOT (% move from European Close):

Gold 0.11 1289.6

Copper 0.39 51670

Oil 0.21 48.37

Natural Gas -0.24 2.926

EUR/USD -0.07 1.1806

GBP/USD -0.03 1.2789

RESEARCH HIGHLIGHTS:

Berenberg pushing RIB SOFTWARE, rates new buy / Berenberg pushing SAP, rates new buy / COVESTRO raised to hold from reduce at HSBC / GBL cut to hold from buy at Cheuvreux / DANSKE BANK raised to reduce from sell at AlphaValue

STILL TO COME:

NUMBERS: EVN / CRH / DNO / Alm Brand / Playtech / SimCorp (1pm) / Schoeller-Bleck / Scandinavian Tobacco / Thurgauer Kantonalbank / Jeudan / Olav Thon Eiendomsselskap / CTS Eventim / Implenia / Hunting / Systemair / Phoenix Group / John Laing / OneSavings Bank

UPDATES:

TODAY’S AGENDA:

AGM’s / EGM’s etc: NextEnergy Solar Fund / LDC / Systemair / BAM Group

ROADSHOWS / INVESTOR DAYS: Gjensidige Forsikring (Roadshow) / NKT (Roadshow) / Pandora (Roadshow) / Vopak (Roadshow)

CONFERENCES:

SEB Industrial & Technology Seminar – Ericsson

MACRO:

EU: French Business Confidence, Manufacturing Confidence, Production Outlook Indicator, Own-Company Production Outlook, Survey of Industrial Investment, Total Jobseekers, Jobseekers Net Change, UK Finance Loans for Housing, GDP, Private Consumption, Govt Spending, Gross Fixed Capital Formation, Exports, Imports, Index of Services, Total Business Investment, CBI Retailing Reported Sales, CBI Total Dist. Reported Sales

US: Initial Jobless Claims, Continuing Claims, Bloomberg Consumer Comfort, Existing Home Sales, Kansas City Fed Manufacturing Activity